I’ve yet to see the question asked: with increasing computer power and quality of techniques why aren’t ‘we’ getting better at sustainable economics? Where is our age of prosperity? Increased computational power shouldn’t mean decreased prosperity for all… unless it’s being used to deliberately plunder the masses.

When we look at all the figures, from where the debt economy has been going for years, to the way the specific meltdown occurred and was carried out, to what’s looming on the horizon, how isn’t this deliberate?

This trend has been accelerating almost directly in line with accelerating technological change and the ever increasing collective power of the computers of those at the commanding heights.

Not even boosts in personal productivity from cell phones has managed to allow the populace to try and keep pace with the growing plutocrat oligarchs:

This is simple, and complex.

Simple Answer:
The economic war has been underway for many years, but until more recently it was a slow crawling menace. Until the mid-2000’s it was more of a scheme to cheat the masses, to keep us undermined yet just happy enough to not really notice the gradual decline. However, over the past few decades it has increased at an alarming rate, incidentally in line with computational increase. Until about 5 years ago it was mostly a plundering of the nation, and right about when that was finished, and when we were all unwittingly at our weakest ever, and when the technology was in place to pull it off, and with a new level of motivation never seen before, the plutocrats went for the jugular of the masses directly and then furthered their cause by instituting TARP “bailouts”.

This came as a one-two punch:
(1) They triggered the sea of debt into a tsunami by imploding the Property Price Index (engineered housing bubble), which directly plundered the ‘wealth’ of those who bought into the con.

(2) Oil price gauging. Completely manufactured fuel price hikes. Virtually everything we use is made from petroleum distillates & derivatives, and is then transported using petroleum based fuels. Triple the price of fuel, by design considering the actual cost and production of oil had never changed, and spike the prices of almost literally everything we all take for granted.

The timing of these 2 events is what to focus on. The fuel crisis was ratcheted up right in line with the increasingly looming ‘pop’ of the housing bubble, which squeezed everyone, especially the poor and the newly damned.

Complex Analysis:

Not only has the global economy imploded rather dramatically, all the hard numbers point towards an inevitable total collapse, especially in the USA. The Federal Reserve and EU Bank are both privately owned institutions, and there’s no debating this fact. The Federal Reserve in particular was at the heart of the US economic meltdown, which brought the rest of the world with it. These institutions are literally at the helm of each federal economy, and aren’t subject to being audited. They’re above each government, just the same as your local city government is subject to the state government, and the state to the federal government.

The global banking scheme is seemingly leading the world into a post-apocalyptic nightmare. How is this possible? Today we have increasingly powerful computers of all different sizes, yet the more powerful our computing hardware and software becomes the faster we’re falling into the abyss, instead of rising to an economic utopia. Computers clearly aren’t helping the system maintain a balanced budget sheet, while when you look at the graphs it appears they’re helping the elitist plutocracy to plunder the nations. Ask yourself how in the face of everything that’s happened in the past few year, billionaires increased in numbers and profits at a record rate in 2009 (Link 1, 2, 3, 4, 5, 6, 7).

What a trillion dollars looks like in $100 bills:

Many people put all of the blame of our current woes on the housing bubble, but a more realistic view is that that crisis only sped up the inevitable. The massive spending associated with bailouts and stimulation merely put off even longer the inevitable. The longer this inevitable is put off the harder the crash will be. Just look at the numbers. Spending got us into the mess, so in response they spend and loan even more. Like it’s going out of style… literally.

It wasn’t originally designed to implode, despite that being how it looks today, but it’s always been designed to leech away the self-reliable wealth of those with less. The less you have the more it hurts you… is and always has been the purpose of the privately owned Federal Reserve bank. The mechanism responsible is inflation.

When the value of the dollar is deliberately reduced every year it creates a situation where you have to set up your surplus finances in ways that will hedge against the inflationary dollar devaluation. During ‘normal’ times, you could invest your money into your home or other property and as the value of the dollar goes down the value of the property would go up. This is just the opposite with automobiles which helps explain why social engineering has us all obsessing with dumping all of our money into our cars that are worth $10,000 less the day you drive it off the lot. Everybody’s primary financial concerns should be in how to position their earnings against inflation, not new spinner rims.

Now what happened with the housing meltdown is the big trend that makes it hard to believe that the design wasn’t to rob almost literally all of the populace, as normally the best thing the little guy can do is invest in his property so that he can fight off inflation. All those years most people thought their house was somehow naturally going up in value, in reality the dollar was going down in value and the markets knew it. Except now the value of our homes has plummeted, it’s unsafe to even invest in property, endless millions refinanced their homes and now owe more than the property is worth, and some 60% of US national assets have been absorbed by the Federal Reserve and the Big 6 banking cartel that are the majority stock holders in the “Fed”.

The other catalyst of the economic downturn was the fuel price crisis. It served as the 1-2 punch to the entire global economy. In the graph above you can see that the more fuel consumption went down the more the price went up. This is the opposite of how the market works, proving massive manipulation. What’s important about is it happened directly parallel to the housing collapse, which made its effects substantially worse than if it occurred in 1999. Assuming it was deliberate, what does this tell you about the titans of Wall Street and their disdain for the global populace?

That graph shows that neither oil production nor inventory had ever changed in ways to justify the spike in prices. On the contrary, inventories went up while consumption was down while mass scale price gouging like never before was in full effect. The answer for how this happened was market speculation. The big banks and hedge funds in effect ‘all’ got together and continuously bet in large scale that oil prices would go up, and sure enough that’s what happened. The costs of everything went up, people were broke, major institutions absorbed by the government & banks, the property markets crashed, and now the inevitable collapse is out in the open for everyone to see.

Note that during the peak of the oil crisis Obama actually went on the record saying that ‘fuel’ prices should be artificially increased so that people would use less fossil fuels. Now he didn’t say to raise oil prices in that particular quote, but inherently that is the overall goal of Cap’N Trade type policies, and we all had a devastating test run during the artificial fuel crisis. Can anyone say they were glad the test run of Cap & Trade happened?

During the economic disaster, Goldman executives cheered their results, emails went on to show. All throughout the crisis, Sachs reaped billions of dollars in record profits while the rest of the world economy has floundered. In July of 2010 Sachs was fined the record amount of $550 million by the SEC for their role in the Subprime fiasco. The same day their stocks actually went up 5% as those in the game know how much evil they had committed, and were relieved at only having to pay a mere $550 million. Days after the settlement, Sach’s put aside $9 billion for employee bonuses.
Sachs was Obama second largest campaign contributor, funneling him $994,795, 7 times what Enron famously gave to Bush. His other top contributors included Google, Harvard, University of California, Microsoft, Citigroup, JP Morgan Chase, Stanford, IBM, Morgan Stanley, BP and General Electric.

These people are textbook “Disaster Capitalists”, those whose portfolios are stacked to reap profits and success in their goals via the mass scale suffering of others. It’s no secret that BushCo. was a regime of disaster capitalists, but ObamaCo. is too. Rahm Emanuel and Hillary Clinton have made public statements condoning the capitalization of crisis. The notorious Henry Kissinger said the economic crisis was a “great opportunity” for Obama to create a “new world order.”

Disaster capitalists are amongst the greatest threat to the world, as having people set up to reap profits ranging from millions to trillions sets a precedent of why would they prevent the crisis, especially if there are agendas that transcend money. “Problem Reaction Solution” is the mechanism to our undoing.

Between the agents from the Federal Reserve many of the key players in the economic meltdown are all accounted for. On top of everything above, Larry Summers, under Bill Clinton, played a key role in repealing the Glass-Steagall Act, which was set up after the first Great Depression to prevent it from happening again. He also helped deregulate derivatives, for which there is now a one quadrillion dollar bubble. After the modern collapse had already begun, Obama made him a top level adviser.

The Federal Reserve was the centerpiece of the housing bubble, as well as in serving as the vehicle to enable Congress to commit runaway spending that involves endless wars and the AGI Manhattan Project. In the meltdown aftermath, Obama moved immediately to hand the bankster monolith even more power, and the Congress banished Ron Paul’s legislation that would have given the Congress for the first time the ability to audit the Federal Reserve to bring to light their deeds.

These players are amongst those at the forefront of setting up a total plutocracy. In a plutocracy the wealthy rule everything, as described by an infamous leaked Citigroup memo.

The mentality of the classical elitist must be discussed. They tend to be Social Darwinists, who apply Darwinist theory to sociology. In their view it’s their divine role to dominate those beneath them, at the top of the food chain as the fittest to survive. This class of elites are their own social group, much like how most ordinary people identify themselves with race, political party, music scene, and so on. This social group adherence transcends the everyday social group affiliations the rest of us know, and elitist propaganda has us all wanting to identify with them to subconsciously justify their types of actions.

So we’re in the middle of a collapse that by all measures looks deliberate, that was caused by private stock holders, who made unfathomable amounts of cash on the ways up and down, and were handed trillions of unaccountable dollars in “bailout” money in the aftermath. Despite all of this, there’s still this push for a near-trillion dollar military budget (in the US alone), along with a global government based on a multi-trillions dollar global carbon tax, and even a mandatory “health care” obscenity that might cost trillions overall, yet somehow we’re not to come to the conclusion that there’s a total economic world war being waged against us?

Of course, to propose there’s a deliberate war, there has to be a “why” they would do it. The simple answers of “greed” or “power” are lackluster to address the scale we’re enduring. They believe they’ll become “gods” with indefinite lifespans of hundreds or even thousands of years, and to speed up the process they’re carrying out a full scale 21st Century Manhattan Project: The AGI Manhattan Project.

Wall Street is notorious for not learning from its mistakes. Maybe machines can do better.

That is the hope of an increasing number of investors who are turning to the science of artificial intelligence to make investment decisions.

﻿With artificial intelligence, programmers don’t just set up computers to make decisions in response to certain inputs. They attempt to enable the systems to learn from decisions, and adapt. Most investors trying the approach are using “machine learning,” a branch of artificial intelligence in which a computer program analyzes huge chunks of data and makes predictions about the future. It is used by tech companies such as Google Inc. to match Web searches with results, and NetFlix Inc. to predict which movies users are likely to rent.

One upstart in the AI race on Wall Street is Rebellion Research, a tiny New York hedge fund with about $7 million in capital that has been using a machine-learning program it developed to invest in stocks. Run by a small team of twentysomething math and computer whizzes, Rebellion has a solid track record, topping the Standard & Poor’s 500-stock index by an average of 10% a year, after fees, since its 2007 launch through June, according to people familiar with the fund. Like many hedge funds, its goal is to beat the broader market year after year.

“It’s pretty clear that human beings aren’t improving,” said Spencer Greenberg, 27 years old and the brains behind Rebellion’s AI system. “But computers and algorithms are only getting faster and more robust.”

Some sophisticated hedge funds such as Renaissance Technologies LLC, based in East Setauket, N.Y., are said to have deployed AI to invest. But for years, these firms were the exception. Some firms that have dabbled in AI are skeptical it is anywhere close to working.

Rebellion is part of a new wave of firms using machine learning to trade. Cerebellum Capital, a San Francisco hedge fund with $10 million in assets, started using machine learning to invest in 2009. A number of high-frequency trading firms, such as RGM Advisors LLC in Austin, Texas, and Getco LLC in Chicago, are using machine learning to help their computer systems trade in and out of stocks efficiently, according to people familiar with the firms.

The programs are effective, advocates say, because they can crunch huge amounts of data in short periods, “learn” what works, and adjust their strategies on the fly. In contrast, the typical quantitative approach may employ a single strategy or even a combination of strategies at once, but may not move between them or modify them based on what the program determines works best.

“No human could do this,” said Michael Kearns, a computer-science professor at the University of Pennsylvania who has used AI to invest at firms such as Lehman Brothers Holdings Inc. “Your head would blow off.”

Rebellion has struggled to raise money, in part because investors since the credit crisis are dubious of opaque math-based strategies.

Wealth accumulation among the richest North Americans (excluding Mexico) grew in 2009, with millionaires in the U.S. and Canada enjoying a 15% increase in their total worth. Collectively, these millionaires possessed $4.6 trillion, according to a report from the Boston Consulting Group.

Since 2006, thousands of people have been killed in the ongoing drug war between Mexican cartels and government forces.

A new must-read article in the August issue of Bloomberg Markets smashes open the world of shadow banking between large banks in the United States and their role in the funding of Mexican drug operations.

Back in March, Wachovia struck a deal with Federal prosecutors under which the bank admitted it didn’t do enough to prevent money-laundering between criminal organizations, in which illicit funds transferred flew past the $300 billion mark. Now Wachovia faces charges from the Department of Justice over violating the Bank Secrecy Act – a first for the bulge bracket of large U.S. banks.

Similarly, traffickers used accounts at Bank of America to purchase three planes that ended up smuggling 10 tons of cocaine. “Federal agents caught people who work for Mexican cartels depositing illicit funds in Bank of America accounts in Atlanta, Chicago and Brownsville, Texas, from 2002 to 2009,” says the article.

Image: Bloomberg Markets

HSBC and Banco Santander are also involved.

The situation has spun out of control, with people like investigator Martin Woods quitting his job at Wachovia because no one would listen to his warnings. Mexican Senator Felipe Gonzalez now carries a .38 pistol with him for protection but even he acknowledges just how bad the violence has become.

“I know this [gun] won’t stop the narcos when they come through that door with machine guns, but at least I’ll take one with me.”

And while cross-border smuggling of cash and drugs won’t be stopped effectively anytime soon, one place authorities can hit is the bank. Specifically, Wachovia is first in line for a slap on the wrist as the bank has repeatedly ignored warnings by regulators and authorities:

“By 2004, many U.S. banks had closed their accounts with these companies, which are known as casas de cambio. Wachovia ignored warnings by regulators and police, according to the deferred-prosecution agreement. ‘As early as 2004, Wachovia understood the risk,’ the bank admitted in court. ‘Despite these warnings, Wachovia remained in the business.”

Today financial power is being concentrated in the hands of fewer and fewer individuals. In fact, the six biggest banks in the United States now possess assets equivalent to 60 percent of America’s gross national product. Back in the 1990s that figure was less than 20 percent. These six banks – Goldman Sachs, Morgan Stanley, JPMorgan Chase, Citigroup, Bank of America, and Wells Fargo – literally dictate what goes on in the U.S. banking industry. These entities are the poster children for “too big to fail”, and they donate massive amounts of cash to the campaigns of both Republicans and Democrats to ensure that they will continue to receive favorable treatment. The vast majority of Americans have had a banking account, a credit card and/or a mortgage with one of these institutions at some point. If they acted in concert, these six banks could literally bring down the U.S. economy overnight if they wanted to. Together with the Federal Reserve, these six banks represent the real financial power in America. They are the 800 pound gorilla in the room that influences nearly every major financial deal that gets done and virtually every major political decision that gets made. As the last couple of years have demonstrated, top politicians from both parties (John McCain and Barack Obama for example) will instantly jump into action and start advocating that the U.S. government spend billions upon billions of dollars when the interests of these behemoths are threatened. The frightening thing is that the power of these megabanks is growing at a frightening pace. As dozens upon dozens of smaller U.S. banks are “allowed to fail”, they either go out of existence or the Feds actually encourage these smaller banks to sell themselves to one of the big sharks. In either event, the banking power in the United States becomes further consolidated in the hands of the megabanks.

Jamie Dimon, chief executive of JPMorgan Chase, said the bank “fell short” of its earnings potential. Katie Falkenberg for The New York Times

Over all, JPMorgan said 2009 net income rose to $11.7 billion, or $2.26 a share. That compares with a profit of $5.6 billion, or $1.35 a share, during 2008, when panic gripped the industry. Revenue grew to a record $108.6 billion, up 49 percent: